Contingent Immunization (I want to shoot myself) important, difference, 875, 632, percent

LBriscoe

Ok, so, page 37 Book 4, I see where the end value (546.72) comes from

Soooo


Moving on to the shift to 5.8 percent

Bond Value

FV=500,000,000
PMT=.0475/2 x 500,000,000 =11,875,000
N=20
I/Y=5.8/2=2.9


PV = 460,583,101 //Book says 460.55


Required Value

FV=546,721,632
PMT=0
I/Y=2.9
N=6

PV=460,547,055 //Book Says 460.52


Why the difference, it seems worse than just rounding ESPECIALLY since the 500,000,000 in the bond doesn't really have any rounded numbers....what the hell?

Am I making a mistake, or am I just trippin' over rounding? The bond difference bothers me...



Edited 3 time(s). Last edit at Tuesday, May 31, 2011 at 10:03PM by rolo550.